No commissions, no compromises

Houwzer is kicking the traditional real estate agent model to the curb. Rather than asking its sellers to foot the bill for hefty commissions, Houwzer pays its agents a salary. This keeps the pressure off seller pocketbooks while ensuring agents don’t steer clients toward higher-priced homes in hopes of bigger commissions.

Instead of paying a commission, Houwzer sellers pay a $995 flat rate for listing their home. They also pay the 3 percent commission to the buyer’s agent. Agents get an annual salary, plus bonuses for good customer service.

“Technology has saved consumers billions of dollars in other brokerage/agent industries as seen in the major decline of stockbrokers and travel agents,” said Kevin Gillen, Houwzer’s senior economic adviser. “Meanwhile, the housing industry is stuck in a cycle of 6 percent commissions. Houwzer is using technology to modernize the industry, the first model to cut commissions in half while still providing full-service representation.”

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